2.	REAL ESTATE ACTIVITY

Dispositions

The Company classifies real estate assets as held for sale after the approval of its board of directors and after the Company had commenced an active program to sell the assets. The Company had no assets classified as held for sale at September 30, 2015.

In the first quarter of 2014, the Company classified three apartment communities, containing 645 units, as held for sale, including two communities, containing 337 units, in New York, New York and an additional community, containing 308 units, in Houston, Texas. In May 2014, the apartment community located in Houston, Texas was sold for gross proceeds of approximately $71,750. The Company recognized a gain of $36,092 on the sale of this community in the second quarter of 2015. In September 2014, the two communities located in New York, New York were sold for gross proceeds of approximately $270,000. One of these communities was held in a consolidated entity, 68% owned by the Company. The Company recognized gains of $151,733 ($127,659 net of noncontrolling interests) on the sale of these communities in the third quarter of 2014. This disposition activity was part of the Company’s investment strategy of recycling investment capital to fund investment and development of apartment communities. The Company determined that these communities did not meet the criteria for discontinued operations reporting and, accordingly, their operating results were included in continuing operations through their sale dates in 2014. The net income and net income attributable to the Company, including gains on sales of real estate assets related to these three communities, for the three and nine months ended September 30, 2014 were as follows:

	Three months ended		Nine months ended
	September 30, 2014		September 30, 2014

Net income	$	138,365	$	176,041

Net income, net of noncontrolling interest	$	115,918	$	153,456

For the nine months ended September 30, 2015, the Company recognized a gain of $1,773 on the sale of its remaining condominium retail space at its former condominium community in Austin, Texas. In 2015, gains on sales of real estate assets were net of state tax expense of $298 related to an asset sale. For the three and nine months ended September 30, 2014, gains on condominium sales activities were $1,052 and $1,862, respectively, resulting from the recognition of $771 in reductions to condominium warranty and related obligations, the sale of a retail condominium and the sale of the final residential condominium unit at a former condominium community in Atlanta, Georgia.

Consolidated Joint Venture

In August 2015, the Company entered into a joint venture arrangement (the “Joint Venture”) with a private real estate company to develop, construct and operate a 358 unit apartment community in Denver, Colorado. The Company owns a 92.5% equity interest and will provide construction financing to the Joint Venture. Through September 30, 2015, the Joint Venture has acquired the land site and incurred pre-development costs. The venture partner will generally be responsible for the development and construction of the community and the Company will manage the community upon its completion. The Joint Venture was determined to be a variable interest entity with the Company designated as the primary beneficiary. As a result, the accounts of the Joint Venture are consolidated by the Company. At September 30, 2015, the Company’s consolidated assets, liabilities and equity included construction in progress of $18,710 and cash and cash equivalents of $163, accounts payable and accrued expenses of $909 and noncontrolling equity interests of $1,371 relating to the Joint Venture.